DoD's Northrop Grumman Ground Subsystem Support Contract Exceeds $159M for Air Force Engineering Services
Contract Overview
Contract Amount: $159,451,517 ($159.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-07-15
End Date: 2026-08-31
Contract Duration: 1,873 days
Daily Burn Rate: $85.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: GROUND SUBSYSTEM SUPPORT CONTRACT (GSSC) 2.0 - GENERAL SUSTAINMENT TASK ORDER
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $159.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GROUND SUBSYSTEM SUPPORT CONTRACT (GSSC) 2.0 - GENERAL SUSTAINMENT TASK ORDER Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for $159.5M. 2. Full and open competition was utilized for this contract. 3. The contract covers engineering services for ground subsystem support. 4. Duration spans from July 2021 to August 2026. 5. This is a delivery order under a larger contract.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms within a Cost Plus Award Fee structure warrant scrutiny to ensure fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential ground subsystem support, with the expectation that competition drives value. Oversight is needed to ensure costs remain reasonable.
Public Impact
Ensures continued operational readiness for critical Air Force ground systems. Supports advanced engineering and sustainment services. Potential for technological advancements through ongoing support. Impacts personnel and infrastructure at specific Air Force installations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can inflate costs.
- Lack of detailed cost breakdown for analysis.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense infrastructure.
- Long-term sustainment contract provides stability.
Sector Analysis
This contract falls under Engineering Services, a broad category often associated with defense and aerospace. Spending benchmarks for similar large-scale sustainment contracts can vary significantly based on system complexity and duration.
Small Business Impact
There is no indication of small business participation in this contract, which is a concern given federal goals to support small businesses in contracting. Further investigation into subcontracting opportunities is recommended.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Award Fee structure requires diligent monitoring of performance and costs to ensure accountability and prevent overspending.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Award Fee structure.
- Lack of small business participation.
- Potential for cost overruns.
- Limited transparency on performance metrics.
- Long contract duration.
Tags
engineering-services, department-of-defense, ut, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $159.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GROUND SUBSYSTEM SUPPORT CONTRACT (GSSC) 2.0 - GENERAL SUSTAINMENT TASK ORDER
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $159.5 million.
What is the period of performance?
Start: 2021-07-15. End: 2026-08-31.
What specific performance metrics are used to determine award fees, and how do they align with achieving value for money?
The performance metrics for award fees are crucial for ensuring value. They should be clearly defined, measurable, and directly tied to the successful sustainment and enhancement of the ground subsystem. Without transparency into these metrics, it's difficult to assess if the government is receiving optimal performance and if the award fee component is truly incentivizing efficiency and effectiveness, or simply adding to the overall cost.
Given the Cost Plus Award Fee structure, what mechanisms are in place to prevent cost overruns and ensure competitive pricing?
Cost Plus Award Fee contracts inherently carry a risk of cost overruns. Robust oversight, including regular audits and detailed cost reviews, is essential. The government must actively manage the contractor's spending, scrutinize all incurred costs, and ensure that the award fee criteria are stringent enough to reward exceptional performance without excessively inflating the total contract price beyond fair market value.
How does this contract contribute to the long-term strategic goals of the Air Force's ground subsystem modernization and readiness?
This contract's contribution to long-term strategic goals depends on its scope and the contractor's ability to innovate. While providing sustainment is critical for immediate readiness, its impact on modernization hinges on whether the engineering services include forward-looking solutions, technology integration, or recommendations for upgrades. A clear link between the contract's deliverables and the Air Force's future modernization roadmap is necessary to assess its strategic value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA820419R0001
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 6006 WARDLEIGH RD BLDG 1575, HILL AIR FORCE BASE, UT, 84056
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $162,339,992
Exercised Options: $159,465,133
Current Obligation: $159,451,517
Subaward Activity
Number of Subawards: 99
Total Subaward Amount: $61,935,208
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821421D0002
IDV Type: IDC
Timeline
Start Date: 2021-07-15
Current End Date: 2026-08-31
Potential End Date: 2039-08-31 00:00:00
Last Modified: 2025-12-05
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